Which are the best performing IPO stocks in India right now?
As per Equitymaster's Stock Screener, these are the best performing IPO stocks right now -
- #1 HARIOM PIPE
- #2 VENUS PIPES & TUBES
- #3 ELECTRONICS MART
- #4 SYRMA SGS TECHNOLOGY
- #5 RUCHI SOYA INDUSTRIES
These companies have been ranked as per the gains they have delivered to investors since listing.
Remember, it's not easy to identify future multibagger stocks, but if you do it carefully and with due diligence, you can find high growth companies which can turn out to become future multibaggers.
How should you go about investing in the best performing IPO stocks in India right now?
The best performing IPOs have already delivered outsized returns. So there is a good chance these stocks might be overpriced.
Before you invest your hard-earned money, make sure you check out the valuations first. Studying the business is equally important. One should only invest in fundamentally strong stocks with bright prospects.
How should you value the best performing IPO stocks in India?
Investing in stocks requires careful analysis of financial data to find out a company's true worth. However, an easier way to find out about a company's performance is to look at its financial ratios.
The two commonly used financial ratios used in the valuation of best performing IPO stocks in India -
Price to Earnings Ratio (P/E) - It compares the company's stock price with its earnings per share. The higher the P/E ratio, the more expensive the stock.
Price to Book Value Ratio (P/BV) - It compares a firm's market capitalization to its book value. A high P/BV indicates markets believe the company's assets to be undervalued and vice versa.